Question

The federal government and all states have a minimum wage. As shown in the documentary "Two American Families," many American workers struggle to find a job that pays them much above minimum wage and that allows them to live a comfortable life. This is in stark contrast with 20-30 years ago, when these same workers were employed in good paying jobs that allowed them a comfortable lifestyle, often with only one salary rather than the dual salaries that most families now require.

A job that pays minimum wage does not provide a living wage. Should employers be required to pay a living wage rather than a minimum wage? Why or why not? What do you think would be most helpful to alleviate the problem of poverty and the working poor, whether at a governmental (federal, state or local), community or employer level?

Answer 1

Employers should not be required to pay the living wage, because living wage is not going to be in line of the abilities of the employees. Though, wages are designed for the employees on the basis of their skills, abilities and responsibilities assigned to them. Hence, forcing the employers to pay the living wages to everyone irrespective of the skills and abilities, will put unnecessary discouragement to eh firm and demand of labor will also come down. So, it should not be a requirement for the employers to pay the living wage. To alleviate the problem of poverty and working poor, there should be skill enhancement training programs, short term vocational training courses and a regulation for the employees to upgrade themselves with the support of organization and government. It will make the employees to achieve higher position in the organization and get higher wages that can be superior to the living wages also. So, it will slowly and progressively reduce the problem of poverty and creation of working poor in the community. For fresher candidates, it should be at community level and the support of government should be provided to the people so that full time employment based education program is delivered. For experienced employees, it is the organization (employer) that should help through training and development programs. Here, the government can also support via career refreshment programs or short term skill based programs. So, for different set of people, different institutions can help the people.